Fintech - Part 2

Fintech - Part 2

Overview

This eCourse consists of four topics on Blockchain and Cytocurrrencies. Topic 1 provides an overview of bitcoin – the precursor of cryptocurrencies – and, using a board game analogy, explores the fundamentals of blockchain and the difference between a centralized and a decentralized system.

Topic 2 develops the model that is introduced in Topic 1 by relaxing assumptions made previously to see how the blockchain system really works. It outlines the key challenges involved in building a distributed database, namely transaction authorization and network consensus. The topic describes how public key cryptography is one potential solution to the authorization problem and how bitcoin’s proof of work functions as a consensus algorithm.

Topic 3 introduces the concept of smart contracts and their use on the blockchain. It also looks at how to build a blockchain product and outlines some of the many potential applications of blockchain, particularly in relation to the financial sector.

Topic 4 introduces the different types of crypto asset and outlines some of the evolving issues and challenges the asset class is facing. The topic also looks at the controversial topic of initial coin offerings (ICOs), the name given to the funding process used by firms in the crypto space and which has attracted a lot of investor attention.

Objective

On completion of this course, you will be able to:
- Describe Bitcoin, the fundamentals of blockchain, and the difference between a centralized and a decentralized system
- Outline the key challenges involved in building a distributed database
- Explain smart contracts and their use on the blockchain
- Outline some potential applications of blockchain in the financial sector
- Name different types of crypto assets and recognize the issues and challenges the asset class is facing
- Define the concept of initial coin offerings (ICOs) and how it differs from IPOs